If the internal rate of return of two mutually exclusive investments is less than the firm's cost of capital, the firm should make
A) both investments
B) neither investment
C) the investment with the higher internal rate of return
D) the investment with the lower net present value
Correct Answer:
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Q43: If the internal rates of return of
Q44: A stand-alone perspective for capital budgeting suggests
A)
Q45: NPV may be preferred to IRR because
A)
Q46: A firm should not make an investment
Q47: Small standard deviations for cash inflows
A) reduces
Q49: A firm should make an investment if
Q50: The lack of correlation between an investment's
Q51: An increase in the cost of capital
Q52: If an investment's net present value is
Q53: The internal rate of return and net
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